Hi there,
We are a new vendor and we are debating whether we should join a buying group...If so, which buying group(s) would you recommend?? thankx
Hi there,
We are a new vendor and we are debating whether we should join a buying group...If so, which buying group(s) would you recommend?? thankx
Buying groups will try to push you around some and dictate pricing/terms, but you'll gain access to their customers, and lots of offices like how easy it is to use a buying group for everything.
As a buyer, I use a buying group for companies that are hard to deal or have reps who refuse to negotiate outside of a buying group. My favorite companies are the ones who let me bill direct with good terms, and I am more likely to expand my business with them than with the others. But that's just me.
A lot depends on what you're selling as well.
ADO and Block are good.
Well...we are selling our own brand...Do you have any recommendations for us? thankx a lot !
Buying groups...good for the reps, good for the frame companies. Win-Win!
(Oh sorry...not for you!)
Ophthalmic Optician, Society to Advance Opticianry
The Alliance is good. They do not have an administration fee, so the discounts you see is what you get, way less confusing. Staff is helpful as well.
When a buying group tells you they do "Not have an Admin fee" this is both true and false.
What they do is actually get a higher discount, say 20% and pass along to you 17%. So they keep 3% for themselves and tell you that you receive a flat 17% with no admin fee.
All they are doing is deducting their fee from the actual discount they receive from the manufacturer.
Im not saying this is bad. They have to make money too. Sometimes it is worth while to go through the buying group.
I've spent the last 3 weeks analyzing going direct with some of our lines and switching from our current buying group to another one.
I found that going direct with some of the smaller manufacturers gave us a bigger discount than either buying group. However the larger frame companies had quotas to meet to get a direct discount and if they were not met, bye bye discount. So with them it made sense to go through the buying group.
Pull out your invoices, do some math, make some calls, and always remember to ask if there are minimum units or $ amt that must be met to get the discount. Also ask if it comes off each invoice or Quarterly etc.
-Crazy
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